Correlation Between Guangzhou Zhujiang and Der International
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Der International Home, you can compare the effects of market volatilities on Guangzhou Zhujiang and Der International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangzhou Zhujiang with a short position of Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Der International.
Diversification Opportunities for Guangzhou Zhujiang and Der International
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Der is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home and Guangzhou Zhujiang is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangzhou Zhujiang Brewery are associated (or correlated) with Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Der International go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Der International
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.55 times more return on investment than Der International. However, Guangzhou Zhujiang Brewery is 1.81 times less risky than Der International. It trades about 0.03 of its potential returns per unit of risk. Der International Home is currently generating about -0.02 per unit of risk. If you would invest 768.00 in Guangzhou Zhujiang Brewery on October 13, 2024 and sell it today you would earn a total of 153.00 from holding Guangzhou Zhujiang Brewery or generate 19.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Der International Home
Performance |
Timeline |
Guangzhou Zhujiang |
Der International Home |
Guangzhou Zhujiang and Der International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Zhujiang and Der International
The main advantage of trading using opposite Guangzhou Zhujiang and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Der International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Der International will offset losses from the drop in Der International's long position.Guangzhou Zhujiang vs. Xinhua Winshare Publishing | Guangzhou Zhujiang vs. Jilin OLED Material | Guangzhou Zhujiang vs. Konfoong Materials International | Guangzhou Zhujiang vs. Ningxia Building Materials |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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